Cabinet Committee on Economic Affairs has hiked Minimum Support Price of raw jute from 2,700 to 3,200 rupees per quintal. Sources said a decision in this regard was taken during Cabinet meeting in New Delhi this evening. The hike has been done for the year 2016-17 to boost production. Agriculture Ministry had proposed an increase in the support price because raw jute cultivation has been declining in recent years. Area under raw jute has reduced to 7.5 lakh hectare in 2015-16, from little over 8 lakh hectare last year. Jute is providing livelihood to more than 40 lakh farmers in West Bengal, Assam, Odisha and eastern Bihar.